The Power Of Cold Calling Motivated Seller Leads

On this episode, we’re going to be talking about the power of your numbers specifically, when cold calling, make sure to keep listening.

 𝐉𝐨𝐢𝐧 𝐎𝐮𝐫 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐅𝐚𝐜𝐞𝐛𝐨𝐨𝐤 𝐆𝐫𝐨𝐮𝐩 
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 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 ➜ https://www.youtube.com/justincolby
 𝐁𝐨𝐨𝐤 𝐚 𝐂𝐚𝐥𝐥 ➜ https://www.thescienceofflipping.com/learn-more

So with that said, let’s talk about the power of your numbers. Many of you guys know that I coach and have coached 1000s of individuals in this space for years. And I am a firm believer and I’m an active business running heavily on cold calling as my lead gen. And so I need to make sure that my entire business understands the power of the numbers because we can pivot based on the power of the numbers. So before we start, I want to clear the air. Many of you might be thinking Justin, I don’t love cold calling, I hate cold calling. That is fine, you don’t need to love it. But what I can tell you is if you are just getting started the fastest way into a seller’s door, getting in contact with the seller will be calling for sale by owners, whether it be on for sale by owner calm or Zillow or F sbo.com. Or for rent by owners, landlords who are looking to rent their home that could potentially turn into an actual purchase. Or Lastly, expired cancelled or failed listing listings. Those three out of the gates should be what you are utilizing. So you can actually start to gain confidence and practice the art of talking to a homeowner. Now for those of you that are like me are have years of experience, maybe you have a marketing budget, whatever the case, and you want to hire this out, I have a couple recommendations for you. And if you want to know who I recommend, you can just simply give me a message as there’s there several of them, or you can write it down here in YouTube, if you’re watching this, just ask me I’m happy to recommend a couple good cold calling companies that are specific to real estate. I don’t love the VA s per se, I just don’t believe they’ve been trained the right way. And one of the big caveats and by the way, I’m going to go on a little left here, guys, just if you couldn’t tell, one of the big caveats on knowing your numbers is making sure they’re doing the right things. And when people tell me they’re going to hire a virtual assistant to do cold calling for him, I always say Well, are you gonna manage them and most people like, well, that’s why I was gonna hire him. So I don’t have to. And now we’re talking about leadership and where the breakdown becomes. And so I’m not a big advocate to telling people that you should go actually get a virtual assistant to do your cold calling for you. I just don’t believe it works because of the fact that most people don’t actually manage their VA is and so I would really encourage you to get to a point of finding enough capital to put into a actual cold calling company, I have a handful that I recommend specific to real estate investing and using them. Now again, kind of taking a little left here. Forgive me as I’m just really kind of fluidly thinking about this. It is also really important for you to understand that cold calling isn’t always the cheapest way to go. And the reason being is if let’s just say you’re calling a list of 10,000 motivated sellers will you’ll also have to skip trace that list now I’ll tell you if you are going to skip trace that list the very best data there is in the cheapest is over a batch skip tracing. So if you just go to T SOF data.com I’m sorry,https://tsofbatch.com  get a log in and use promo code Ts lf they will actually give you a discount on their skip tracing they are by far the very best in the industry. Go to https://tsofbatch.com and use promo code TSOF their killer With that said if you did download a list of 10,000 and you skip trace it there’s still just a cost that a lot of people don’t talk about a lot of the Guru’s don’t talk about the actual cost of going for volume. So let’s dive into that. Right because this is really about the start of your KPIs is What is going to be your cost of the callers and then what is your cost of the skip tracing. And if you combine that, then you can start to have your cost per lead, and your cost per deal. Now, I can tell you right now, we just did the morning meeting, and we are getting $17.50 cent cold calling leads in our business each and every week right now. Now, that is over time, we have dialed millions of people over the last several years. And so it has really started to average out and continues to get smaller. That is not the case coming out of the gates, if you are looking to go hire one of my suggested cold calling companies that I would advise or you know, and skip trace, then the first 10,000 calls are gonna have a much higher cost, then your 250 iF 1000 call if you will, right, because you basically already done all the skip tracing, all of that cost is already front loaded. So it starts to become cheaper as you are done. Now. Here’s really the meat and bones of what I’m trying to get out here, you are looking to try to find as many leads as possible and nurture them until there is a event that they are dealing with that they have to sell. The main difference between PPC and cold calling is PPC, which is pay per click advertising on Google is they’re going through that event right now they need to sell now high motivation, high cost of lead, PPC leads can range anywhere from $200 to $700. I’m getting $17 leads, right so you can see there the difference, and I get a mass volume of leads. So we bring in roughly 100 new leads every single month. And so we are bringing in 100 new leads every single month. And that is just one cold calling company. And so you can see how over time, you have all these leads to start working. So what you essentially want with the cold calling company or even yourself, you want good data. And why is because you want to make sure that you have 10% of all the calls, you make all of them 10% of them, you can mark as a contact a contact. And what that means is they’re actually the right person, or the right person lives in the house, meaning if you call and you say hey, is Justin there? And I answered and said yes, this is him, boom, contact, now you know your data is good. So 10% of all calls, you want to be a contact, this is why I highly encourage you, for sure to be using batch skip tracing, okay, promo code t s o f, because their data is the best. So you go in get good data and you get 10% contact ratio from that 10%, then you want to have roughly 7% of the 10% are going to be actual seller leads they’re interested in selling in the next 12 months. That’s what a lead is defined to my company, someone who is interested in selling in the next 12 months. Now, do they want the number you’re gonna give them? I don’t know, probably not. Are they willing to do this in the next two weeks, I don’t know, probably not. But they’re looking to sell. The key to cold calling will be your ability to bring the lead in nurture the lead until they’re actually ready to move forward. That will be your key. And the those that have the best nurture system, the best follow up system and quite honestly make the most offers, those are going to be the ones that convert the most deals. So out of all of your leads, your next target will be to convert roughly 2% of all of the leads that you bring in. Okay, 2% out of all of the leads that you bring in. That’s really what you’re trying to do here. By the way, I’m going to admit to a mistake I just made as I was kind of rattling off all these thoughts I’m having right now about cold calling, I’m bringing in 100 leads a week 100 leads a week, not a month. And so again, when you are converting 2% that would be two deals a week that I’m converting just from my cold calling, right, I’m bringing in 100 leads a week, four weeks a month, you can see how the numbers work. Now, that takes time, your conversion will get better over time based around your ability to follow up. So again, my lead cost is $17, which is incredible. I keep I try to keep all of my costs to deal roughly between 3005 1000. So sometimes if you ask me, I might be saying, you know cost me roughly $5,000 to go get a deal. The other times you might ask me and I might tell you is $3,000 because I’m trying to keep right in that sweet spot. It used to be I would be able to say $3,000 every time. Now that’s not the case. It’s progressed higher. But if we do a couple conversions, and we get a couple deals really quick, all of a sudden, it’ll quickly drop back down, creeps back up, because we spent a little bit more drops back down, you get my point. So here’s the point. This is invaluable to you to understand if you are going to get into cold calling, and I highly recommend it. You need to know your numbers because you’ll need you’ll know where you’re supposed to move your lever, right? You’ll know whether you’re just converting terribly whether your data is incorrect, whether you know you’re not converting the leads, whether you’re in need of better offers, are you making enough offers to even make that conversion of 2% do so if you know this stuff, you’ll know your data is good. You’re spending right minute the callers are making the right amount of calls the lead volume is a good lead volume, the price of your leads are good, the deal cost is good, because then it’s just math and you say how much more money can I spend. For those of you just getting started again, remember the best places to start for you to cold call yourself for sale by owner on Zillow for sale by owner calm etc for rent by owner as well as failed and cancelled and expired listings. That’s the best way because absolutely free. All you have to do is skip trace them over a batch again, go to https://tsofbatch.com and use TSOF as the promo code. Again, if you’re listening to this on iTunes, go over to my YouTube youtube.com forward slash Justin Colby. subscribe because each one of these podcast episodes are actually right there on YouTube. In fact, not only these, but I dropped three separate YouTube videos all about business, entrepreneurship and real estate right there on that YouTube so that is six total videos a week. I’m bringing the fire I’m bringing the heat I hope this really really helps. Leave comments below. Make sure you’re liking this video. Make sure you’re giving me a five star five star review on iTunes and make sure you’re subscribing. See you guys later peace.